Complaints filed against five Valley-based cooperatives accused of misappropriating over Rs 40 million of depositors

Published On: November 1, 2022 06:04 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 1: The Kathmandu Metropolitan City (KMC) has received complaints from 633 member depositors against five cooperatives accused of embezzling a total of Rs 40.05 million.

According to the Department of Cooperatives under the KMC, the complaints were filed in the first three months of the current fiscal year. Of the cooperatives accused of embezzling the said amount, Development Savings and Credit Cooperative has been blamed for failing to pay back Rs 14.50 million to the depositors.

Likewise, Arakshya Savings and Credit Cooperative failed to payback Rs 10.04 million and Nava Sangkalpa Savings and Credit Cooperative failed to settle Rs 1.74 million of depositors. Jay Hanuman Savings and Credit Cooperative and Sukha Sambriddhi Savings and Credit Cooperative have been alleged for misappropriating a total of Rs 13.88 million.

Along with a deepening liquidity crisis in banks, the country’s cooperatives have also started facing financial problems of late. Many cooperatives have been found unable to return their depositors’ money when demanded.  

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